Press Releases

Scheme to encourage provision of residential care home for the elderly premises

The Government has announced a scheme to encourage provision of residential care home for the elderly (RCHE) premises in new private developments.

The scheme was proposed against the backdrop of an ageing population, and as part of our overall strategy to provide quality residential care to our frail elders via a mixed mode of service provision with participation from non-governmental organisations (NGOs) and the private sector, to suit the varying needs and affordability of elders and their families, a spokesman for the Health, Welfare and Food Bureau said today (July 23).

The spokesman noted eligible RCHE premises under the scheme would be exempted from payment of premium under different types of land transactions, including lease modification, land exchange and private treaty grant, with incorporation of certain lease conditions to ensure the delivery of the RCHE premises.

"In return, developers have to pay for the cost of constructing the RCHE premises. We will allow the developers to lease, sell or operate the premises themselves or through agents as long as the premises remain as RCHEs.

"RCHEs under the scheme will be operated on a commercial basis targeting elders and their families who are able and prepared to pay market determined rates," the spokesman said.

On prevention of abuse, the spokesman said the requirement to provide RCHE premises would be stipulated as a condition in the lease and the unauthorised change in use of the premises would lead to a breach of the lease conditions and a cause for lease enforcement actions.

"The lease conditions will prohibit the assignment or sub-letting of the RCHE premises except as one whole unit. Furthermore, RCHEs in these premises will be regulated by the Social Welfare Department (SWD) under the existing licensing regime," the spokesman said.

To ensure the objective of encouraging development of purpose built RCHEs in better locations would be met, premium exemption would only be granted with the support of SWD.

"SWD will take into account a number of factors including demand for elderly residential care service in the district and the accessibility of the facility.

"The department will issue guidance notes on best practices in the design and operation of RCHE for interested developers so as to meet the objective of providing quality RCHEs.

"The scheme will send a clear message that the Government continues to accord importance to the private sector's role in the provision of quality residential care places. Interested developers can approach SWD for more information," the spokesman said.

The spokesman added that the Government would keep under review the market response after the scheme is put in place.

The Elderly Commission, the Land and Building Advisory Committee, the Real Estate Developers' Association, and the relevant panels of the Legislative Council were consulted on proposals to encourage provision of RCHE premises in new private developments. Their major views had been taken into account in formulating the current scheme with premium exemption.

The Government has adopted a premises-led approach under the residential care programme for frail elders and launched various initiatives to increase the supply of quality RCHE premises. The scheme is one of the initiatives.

In parallel, the Government will continue to build RCHE premises, or to pay developers to build on Government's behalf on an entrustment basis.

The Government will also continue to select suitable operators for these premises at nominal rent through competitive bidding by both NGOs and the private sector. These RCHEs provide quality subsidised and non-subsidised places on a continuum of care basis.

End/Wednesday, July 23, 2003
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